Private equity deal-making in the first half of 2013 has been hampered by the flurry of activity that took place in 4Q 2012, which pulled forward many transactions that would have closed in 1H 2013 under a normal deal timeline as investors pushed to close deals before taxes increased on January 1. The B2B industry saw its slowest quarter in the post-crisis era in 2Q, with just 95 deals totaling $8.0 billion. Capital invested in the B2C industry was strong at $31.2 billion thanks to the Heinz deal, but the 64 transactions closed in 2Q 2013 is the fewest in more than a decade. Healthcare continues to be a difficult industry to invest in due to regulatory uncertainty and a dearth of attractive opportunities; as such, PE firms only executed 37 deals totaling $4.1 billion in the space during 2Q. IT did provide some solace, as deal flow increased and capital invested more than doubled from 1Q to 2Q. Despite the slow quarter, the team at McGladrey has been busy and says that the normal pipeline of activity is returning, which should lead to increased deal activity in the second half of the year.
In-depth information and analyses on each of these industries can be found in the Private Equity Deal Flow Profiles published by McGladrey. Powered by PitchBook, the reports include current industry trends, deal activity and exit activity, as well as insight from McGladrey professionals.
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